The proposed work is concerned with evaluation of standard methods and the development of new methods in EEG based on the integration of physics, engineering and computer methods with established EEG research. The principal objective is to improve the spatial resolution of EEG so that scalp recordings more accurately represent the activity of the underlying neural sources. Thus, the effects of activity at the reference electrode and volume conduction are to be removed from unprocessed EGG signals by means of new current source density and spatial deconvolution methods which are to be developed both theoretically and by means of skull tank and human subject experiments. Unique features of our approach include experimental estimates of the local skull resistance function, the use of a realistic finite element model of the human head, the integration of skull tank data and data obtained from patients with chronic depth electrodes with the theoretical development, and evaluation of all methods for four kinds of sources: localized and stationary, localized and nonstationary, distributed and stationary, distributed and nonstationary. Thus, the proposed methods are applicable to a wide variety of studies of spontaneous EEG, brainstem evoked potentials, and event related potentials.